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Orchard Supply Hardware Stores Said to Consider Bankruptcy Filing This Week

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Orchard Supply Hardware Stores Corp. (OSH), the chain spun off by Eddie Lampert’s Sears Holdings Corp. 17 months ago, is considering filing for bankruptcy as soon this week, Bloomberg News reported on Saturday. The chain is also continuing talks with lenders on a restructuring of about $261 million in debt and capital lease obligations. Orchard Supply, based in San Jose, Calif., said in October that it had hired Moelis & Co. to help refinance its senior secured loan. It has posted a combined loss of $132.8 million in the past two years. Lampert and his RBS Partners LP fund together hold the biggest stake in the company, with about 21 percent of the shares outstanding as of May 13, according to regulatory filings.